LEADERSHIP MESSAGE
Insights from Our Chairman
Our focus on adding new facilities, incorporating new product lines,
and implementing process improvements and technology upgrades further strengthens v our
competitive position and supports future growth initiatives.
Dear Shareholders,
It gives me immense pleasure to address all of you and provide a review
of the year's performance and our progress.
Embracing a Holistic Approach: Culture, Nature, Future
The theme for this year, ‘Culture, Nature, Future,'
encapsulates the Company's holistic approach to growth and sustainability. We
prioritise fostering a culture of collaboration, respect, and
continuous learning, ensuring each team member feels valued and
inspired. Succession planning is central to our focus on driving growth, with leadership
transitions marking crucial milestones. Amidst this trajectory, we remain dedicated to
exploring new ideas and expanding our business. As we focus on driving the Company's
growth in the coming years, succession planning takes centre stage to ensure seamless
transitions in leadership. Passing the baton of the Company's leadership to a new
team marks a crucial step
in our journey. ‘Nature' highlights our commitment to
environmental stewardship, minimising our ecological footprint through sustainable
practices. ‘Future' reflects our forward-looking approach to innovation and
impact, embracing emerging trends and technologies to shape a brighter future for all
stakeholders.
Global Resilience: Navigating Macroeconomic Challenges
The global economy has shown remarkable resilience despite facing
several challenges, including the Israel-Hamas war and the Red Sea Crisis. Despite these
challenges, the global economy remained stable with a growth rate of 3.2% in CY 2023. It
is forecasted to remain steady through CY 2024 and CY 2025 according to IMF. In 2023-24,
India's economy grew impressively at 8.2% according to PIB, marking the third
consecutive year of surpassing the 7% mark. This growth is attributed to the Indian
Government's efforts to rejuvenate both the physical and digital infrastructure to
strengthen connectivity, boost the manufacturing sector's competitiveness, and
promote exports.
2023-24 Performance: Thriving Amid Adversity
Despite challenges like geopolitical tensions, fluctuating freight
charges, and container availability issues, the Company has maintained its upward
trajectory. Leveraging our global presence, we have adeptly responded to evolving customer
demands while keeping capacities engaged throughout the year.
Despite a challenging year, we remain steadfast in our commitment to
growth
and resilience. Our revenue from operations stood at ' 2,123 crores and
EBITDA stood at ' 534 crores, we maintained a strong EBITDA margin of 25.2%. Our Profit
After Tax (PAT) stood at ' 411.9 crores, while our Return on Capital Employed and Return
on Net Worth stood at 24.74% and 21.44% respectively. These results highlight our ability
to adapt and sustain profitability in tough market conditions.
Moreover, our focus on adding new facilities, incorporating new product
lines, and implementing process improvements and technology upgrades further strengthens
our competitive position and supports future growth initiatives.
Valuing Our People: Our Greatest Asset
Our employees are not just stakeholders but our most valuable assets.
Despite facing tough and challenging conditions, they have consistently contributed
significantly to our progress. We remain committed to providing them with comprehensive
health and insurance benefits and other amenities. Moreover, we prioritise job security to
instill confidence among our workforce. Recognising our responsibility towards these
foundational aspects, we continuously strive to strengthen our reputation as an employer
of choice, dedicated to the well-being of our employees.
Championing Sustainability: Our Commitment to ESG
Environmental, Social, and Governance (ESG) practices are deeply
ingrained in our corporate culture and operational framework. We have implemented various
initiatives to reduce our carbon
footprint and advance sustainability across our operations. By
prioritising sustainability, we have minimised our environmental impact and operational
efficiency improvements.
While sustainability is integral to our business ethos, we indirectly
support our clients in achieving their ESG goals with solutions that align with their
sustainability initiatives. This approach benefits the environment and enhances our
overall value to our clients, fostering long-term partnerships based on shared
environmental values.
Closing Remarks: A Vision for the Future
As we reflect on our journey and the achievements we have made
together, I extend my deepest gratitude to our dedicated team, whose commitment and hard
work have driven our success. I also want to express appreciation to our valued
stakeholders for their continued support and trust in our vision. Looking ahead, we remain
resolute in our pursuit of excellence, innovation, and sustainable growth. Together,
let's embrace the opportunities that lie ahead and continue to make a positive impact
in our industry and beyond. Thank you for being a part of our journey.
| Best Wishes |
| Mukesh Shah |
| Chairman |
From the MD's Desk
We are poised to not only meet but exceed the expectations of our
stakeholders while contributing to a more sustainable future through innovation and
responsible practices.
Dear Shareholders,
It is with great pleasure and a sense of responsibility that I address
you all for the first time as the Managing Director. As we look back on the past year and
chart our course for the future, I extend my sincere gratitude for your continued support
and commitment.
Specialty Chemical Industry:
A Growing Force
According to Grand View Research, the global specialty chemicals
market, valued at US$ 641.5 billion in 2023, is anticipated to advance
at a CAGR of 5.2% from 2024 to 2030. This impressive growth is largely driven by the
increasing demand for pharmaceuticals, food and feed additives, and flavours and
fragrances, among other sectors. This positive trend reflects the critical role that
specialty chemicals play in various industries and underscores the exciting opportunities
that lie ahead for our business.
The Indian specialty chemicals industry
has experienced significant growth in recent years, solidifying its
position as a key player in the country's chemicals and petrochemicals market. Record
levels of investment in capital expenditure and strong revenues emphasise this growth,
fuelled by robust demand from global clients seeking alternatives to China and a rise in
domestic consumption. India's attractiveness as a manufacturing hub is further
strengthened by factors such as low-cost operations, skilled labour,
and favourable government policies. With investments in R&D,
operational scaling, and efficiency measures, India is poised to expand its global market
share. It is set to emerge as a compelling alternative hub for specialty chemical
manufacturing, attracting numerous global manufacturers looking to diversify their
production capacities.
Specialty Performance Additives: Driving Sustainable Solutions
At Fine Organics, we remain committed to the specialty performance
additives business, recognising the tremendous potential of oleochemistry. We are
determined to explore new avenues and expand our product range, using raw materials plant
sources and highly automated facilities that ensure quality consistency at global
benchmark levels.
Our goal is to continue expanding within this sector, leveraging our
technical expertise and commercial experience. To strengthen our global presence, we
actively explore acquisitions and new opportunities. We are confident that these strategic
initiatives will enable us to reach greater heights and deliver sustained value to our
shareholders.
Strategic Expansion: Enhancing Global Footprint
We have incorporated a wholly owned subsidiary of the Company in
Maharashtra, named Fine Organic Industries (SEZ) Private Limited. This subsidiary is in
process of acquiring a strategic parcel of land at the JNPA in Mumbai for a greenfield
expansion project. This expansion marks a pivotal moment for our future growth, as it will
enable us to enhance our global footprint by exporting our products manufactured at this
new facility.
This expansion seamlessly integrates with our overarching international
strategy, epitomised by our joint venture, Fine Organic Industries (Thailand) Co. Limited
which focusses on manufacturing, exporting, and distributing specialty additives.
R&D Facility: Driving Innovation and Efficiency
The recent relocation of our R&D facility from Mahape to Dombivli
in Maharashtra marks a pivotal move aimed at bolstering our operational efficiency and
advancing our capabilities. Equipped with cutting- edge technology, our new R&D hub is
spearheaded by seasoned scientists and researchers, underscoring our commitment to
excellence in innovation and developing cutting-edge solutions.
Our focus is on exploring new end- use opportunities with oleochemical-
derived green additives. It plays a crucial role in developing a diverse range of
additives across industries including food emulsifiers, cosmetics, coatings, polymers,
rubbers, and animal feed nutrition, among others. By leveraging our robust R&D
infrastructure, we are actively engaged in rigorous trials to introduce novel products
that meet the dynamic demands of our customers globally.
This strategic shift underscores our dedication to sustainability and
pioneering solutions, reinforcing our position as an industry leader. We are poised to not
only meet but exceed the expectations of our stakeholders while contributing to a more
sustainable future through innovation and responsible practices.
Recognitions: Celebrating Excellence
Fine Organics, a leading player in the specialty chemicals industry,
has been honoured with the prestigious recognition of being named Forbes Best Under 200.
This accolade highlights the Company's outstanding performance and excellence within
the specialty chemical sector. We have demonstrated our ability to compete and excel
alongside other notable businesses, further solidifying our reputation as a top performer
in the industry.
Closing Note: A Promise for the Future
As I draw this letter to a close, I sincerely thank each of you for
your continued support and confidence in our collective vision. It's been an honour
to address you for the first time as Managing Director, and I am truly humbled by the
opportunity to lead the Company forward.
As we embark on this journey together, I am inspired by the passion and
dedication that permeates every facet of the Company. With your continued partnership and
commitment, I am confident that we will navigate any challenges and seize countless
opportunities on the horizon.
I am excited about the road ahead and the incredible possibilities that
await us. Let us remain strong in our pursuit of excellence, innovation, and sustainable
growth, always mindful of our responsibility to our stakeholders and the communities we
serve.
| Best Wishes |
| Jayen Shah |
| Managing Director |